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TUI governance under fire from shareholder group

Mon, 13th Feb 2017 16:46

LONDON, Feb 13 (Reuters) - Travel group TUI hasbeen criticised for its arrangements on governance and executivepay by a leading shareholder body, which said that the touroperator's approach falls short of British standards.

Ahead of TUI's results and annual general meeting onTuesday, Institutional Shareholder Services (ISS) criticised thetour operator for not giving its shareholders a vote onexecutive pay and for using transaction-related bonuses.

Though incorporated in Germany, the group's main listing hasbeen on the London Stock Exchange since the 2014 merger of TUITravel and TUI AG in 2014.

"In general, we find that while TUI's overall governancearrangements are consistent with German market practice, thereare a number of areas where the company falls short of UKinvestor expectations," the ISS report said.

"In addition, some elements of the company's approach toexecutive pay fall short of expected UK practice."

A TUI representative was not immediately available forcomment.

Last week rival Thomas Cook encountered significantinvestor dissent at its AGM, with about a fifth of shareholdersvoting against its directors' remuneration.

(Reporting by Alistair Smout; Editing by David Goodman)